October 15, 2024
By: Dwayne Page
Conditional funding for construction of a new elementary school has cleared a hurdle
During a meeting Tuesday night, the county budget committee voted 5-0 to recommend to the full county commission that a 30-year bond resolution be adopted not to exceed $55 million for construction of a new elementary school provided that the four municipalities in the county approve extending their existing sales tax agreements with the county for the life of the bond. The cities have until January 1 to act based on terms of the bonds for the project if issued as early as February.
If the cities extend their sales tax agreements and the county commission approves the budget committee’s recommendation, funds for construction of a new school would be totally supported from the local purpose fund (local option sales taxes) to debt service to cover the projected costs. No property tax dollars would be needed to fund it.
“I would make a motion that we make a recommendation back to the full commission for a 30-year bond issue not to exceed $55 million contingent upon the other cities in the county agreeing to the extension of the sales tax agreement by January 1 because these numbers are based on February 1. This is to be fully funded with existing sales tax proceeds assuming the other cities extend their agreements, and the issuance of bonds would only be for what is needed to cover the projected costs,” said budget committee member Tom Chandler.
Budget committee member Mathias Anderson offered a second to the motion and fellow members Sabrina Farler, Tony (Cully) Culwell, and Chairman Jeff Barnes all voted in favor. Budget committee members Tony Luna and Glynn Merriman were absent.
During a joint meeting with the Board of Education and Director of Schools on October 8, the County Commission and County Mayor heard from Brian Templeton of Upland Design Group, the school board’s architect on plans to build a new 800 student Pre-K to 2nd grade elementary school to replace the existing Smithville Elementary complex. The construction would be on property adjacent to Northside Elementary School.
Templeton conducted a power point presentation showing a rendering of the proposed new school as well as the schematic design and floor plans. The commission had first been shown the plans in a joint meeting with the school board two years ago.
According to Templeton, the plans are exactly the same except for the cost. In September 2022 the projected cost to build this proposed 124,207 square foot facility was $46,199,875. Today, the projected cost is $53,414,825.
Under the sales tax agreements with the county, which are set to expire in 13 years on July 16, 2037, the cities turn over to the county for schools a greater percentage of their local option sales tax collections than they would otherwise be required to do. That money goes into what is called the Local Purpose Tax Fund for Schools to help fund school operation and debt. Officials say the county must be able to count on that extra sales tax money coming in from the cities over the life of the 30-year bond in order to cover the costs without having to use or raise property taxes to fund it.
Some city leaders have apparently been reluctant to commit to an extension until the county gets serious about new school construction.